Question 1

excited to see this develop! I couldn't find the full investor agreement on the page and I'd like to better understand the 30% net profit.

Accepted Answer

Hi Julie, we share your excitement! Our CPA accountant is currently reviewing our operating agreement paperwork (standard procedure after a company hits the $50k mark on WeFunder) and will hopefully be relinked at the bottom of our campaign page soon. But to explain it in simpler terms here, our return on investment (with current Early Bird perks) is 130% plus equity, for example, for $400 you’ll get a return of $520, and once that is met, you’ll receive checks for your percentage of the comp...

Question 2

Hello , hope all is well ! will this Offering close exactly at a goal of 250K ? or 350K ?

Accepted Answer

Hi Greg! We close out the campaign at exactly $350K. Any dollar over that amount will be returned as we're only selling the allotted shares. Let me know if you have other questions anytime! -T

Question 3

Hello! I'm trying to better understand the 30% Net Profit share after the initial 125% payback. From your response to Julie, does this mean the company valuation is $1 million? So an investor who who invests $10k owns 1% of the company and receives 1% of the profit. An investo...

Accepted Answer

Hey Mehul! Great question — yes, you're correct — since we're selling 30% of our company (the film's LLC) for $350K, that means that our valuation is ~$1.1 million. So a little less than a ~$12K investment takes 1% of the company. And similarly, a ~$1200 investment takes 0.1%. That is the 30% net equity mentioned in the terms. So, for example, any money the film makes first gets distributed to WeFunder investors until they make back 125% of their initial investment (ie, $12K investment gets $...

Question 4

Thank you for the quick response! So just to clarify, after the intial payment, the residual stream is 30% of gross revenues? (as opposed to net profits or any other metric). After release, does the company have any ongoing expenses and where do those expenses get paid from? T...

Accepted Answer

Hey Mehul, apologies for the slight delay — traveling and chaos! Yes, the residual stream is 30% of Net Profits, not gross revenues. After release, the company will have ongoing expenses that will be subtracted from the gross, but these costs will be VERY minimal. For example, our yearly LLC fee for the state of Delaware is $300/year, and any foreign subtitle translations can cost around $350. Things like festival fees and anything that can be pre-factored into the budget itself will be done ...

Question 5

Hi Thomas, I am impressed with many things, including the fact that some investors I know and respect have decided to invest. I too have questions about the equity piece: 1. If it's equity, then you could take revenue from the first movie and move it to subsequent projects, me...

Accepted Answer

Hi Alan! Thomas here. Great question! 1. Our contract doesn't carve out derivative properties from the company ownership. If we made a sequel or TV show, then we'd have to license it from the WeFunder LLC. So any revenue would be first funneled to investors until 125% ROI, and then filmmakers and whoever else owns equity. 2. Yes, if we do increase the gross budget amount that investors are contributing to then shares would get diluted. However, that’s something that we’re talking with outside...

Isle Child - The Movie

Back the AAPI-led feature film about Asian identity, adoption, and self-love!

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Isle Child - The Movie

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